A security is a negotiable instrument representing financial value and functioning as proof that an investor has invested money in an organization's equity or debt. Securities may be categorized into debt securities (e.g., banknotes, bonds, debentures and the like) and equity securities (e.g., common stocks and the like). The entity issuing the security is called the issuer.
Municipal securities are debt securities, issued by government entities (e.g., local and/or state governments) and/or agencies or other authorities established by governing entities. Municipal securities may be used to fund infrastructure, schools, other municipal improvements or expenses, and/or the like.